Texas noncompete geographic limitations are one of the most contested elements of noncompete agreements in court.

Employers understandably want to protect their business interests, while former employees want the freedom to pursue new opportunities. Courts in Texas walk a fine line between those competing interests, often focusing on whether a noncompete’s geographic scope is reasonably tied to the employeeā€™s role and the companyā€™s business footprint.

Over the years, the law around Texas noncompete geographic limitations has evolved. While older cases typically required the restriction to mirror the employee’s actual sales territory or regional scope, more recent cases show that courts may uphold broader restrictionsā€”sometimes even international in natureā€”if they are justified by the employeeā€™s role and access to sensitive business information.

Legal Standard for Geographic Scope

Under Texas noncompete law, a covenant not to compete is enforceable only if it contains reasonable limitations on:

  • Duration,
  • Geographic area, and
  • Scope of activity to be restrained.

Courts evaluating Texas noncompete geographic limitations ask whether the restriction is no greater than necessary to protect the employerā€™s goodwill, confidential information, or business relationships. The broader the restriction, the stronger the justification must be.

Read: When is a Texas Non-Disclosure Agreement Actually a Non-Compete?

Can a Noncompete Apply Worldwide?

A common question is whether a noncompete agreement can apply globally. While courts are skeptical of overly broad provisions, there have been circumstances where a noncompete geographic restriction with worldwide scope was upheldā€”particularly when the facts support it.

Case Example: Global Reach Justifies Broad Restriction

In one Texas federal case, an employee in a niche industry, reactor thermometry, was promoted to Regional Sales Manager with responsibilities spanning Europe, Russia, and parts of North America. He regularly attended global industry conferences and had access to confidential, worldwide client data. His work touched not only his assigned territory, but included interactions with clients around the world.

The agreement in that case prohibited the employee from working for any competitor in the U.S. and any country where the employer conducted business. The court upheld the restriction, reasoning that the noncompete geographic scope matched the reality of the employeeā€™s global exposure and access to sensitive information. Because the restriction was tailored to his actual reach and role, it was deemed reasonable.

When Is a Broad Geographic Scope Reasonable?

A Texas noncompete geographic limitation may be enforceable, even if it seems broad, if:

  • The employee worked across multiple states or countries;
  • The employee had access to trade secrets or client information used in those regions;
  • The employer operates in a niche industry with a small, international client base; and
  • The employee was involved in strategic or executive-level decision-making.

However, if the geographic restriction includes areas where the employee never worked or had no influence, a Texas court is more likely to find it unenforceable.

Why This Matters for Employers and Employees

Businesses operating in todayā€™s digital and global economy need to carefully tailor their noncompete agreements. A cookie-cutter approach can easily backfireā€”either by failing to protect the companyā€™s interests or by including overly broad Texas noncompete geographic limitations that a court wonā€™t enforce.

Likewise, employees should not assume that a noncompete is invalid just because it includes a broad geographic area. Courts will look at the facts of each case to determine if the restriction is fair and reasonable.

Talk to a Lawyer Who Knows the Landscape

Whether you are trying to enforce a noncompete agreement or determine if one is enforceable, you need experienced legal counsel. Robert Wood has decades of experience navigating the complexities of Texas noncompete geographic limitations and helping clients understand whatā€™s reasonable, whatā€™s enforceable, and whatā€™s not.

Contact Robert Wood for a consultation today to discuss your situation and get clear, practical guidance on your rights and obligations under Texas noncompete law.